B Cure Laser developer cuts IPO valuation in half

After 70 IPOs so far this year, the Tel Aviv Stock Exchange appears to have reached the stage of selectivity. An updated draft prospectus from Erika Carmel, developer and marketer of the medical device B Cure Laser pain relief, revealed that the company had to cut nearly half the valuation required in its initial offering, to NIS 430 million, from an original ambition to an estimated value of about NIS 800 million. Erika Carmel will seek to raise approximately NIS 90 million, while its current shareholders, headed by Chairman Michael (Mickey) Schlosser, will sell property worth NIS 20 million. The market source explains the significant downgrade in Erika Carmel’s valuation as the IPO approaches by the fact that “the market is becoming more selective.” It comes shortly after Econergy Renewable Energy completed its IPO after cutting its valuation in half from the level originally planned. The company raised 150 million shekels, worth 1 billion shekels. Shareholders Eyal Podhorezer and Yoav Shapira had to abandon an accompanying sale offer. A market source said today, “Although there is still brisk bid activity, it appears as if the market has generally calmed down, and institutions are a little tired from the intense wave of IPOs over the past few months.” The sources also indicated a decrease in the number of players. The acquisition of Psagot by Altshuler Shaham and Halman-Aldubi by The Phoenix by The Phoenix “reduces the number of possibilities in the market and makes them more difficult.” Another source said, “To ensure the continuation of an offer, you have to reach an agreement with several large institutions that will use their power to lower the price.” Published by Globes, Israel business news – en.globes.co.il – on July 22, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021